Most innovation in “environmental” technologies takes place in OECD economies. From 1978 to 2006, almost 98% of all patents pertaining to air and water pollution control technologies were deposited by inventors from OECD countries. Japan, Germany, the United States, France and the United Kingdom were the most active. Korea has also become remarkably active in recent years.

Environmental technologies that mitigate crossborder (i.e. SO2) or global pollutants (i.e. CO2) benefit all countries. However, since much relevant innovation occurs in OECD countries, some transfer from developed to developing countries will be required to address environmental problems worldwide.

Exports of environmental goods in the OECD area reached USD 370 billion in 2006, or 1% of its gross domestic product (GDP) and nearly 6% of its merchandise exports. In the same year, the BRICS (Brazil, the Russian Federation, India, China and South Africa) exported USD 43 billion, which accounted for almost 1% of their GDP and 2.7% of their total merchandise exports. Over the last four years, trade in environmental goods has grown dynamically, increasing faster than total merchandise trade, particularly in the BRICS, where exports have grown at an annual average rate of 35%.